**Opportunity cost of 1 car in Italy:** 250 bottles of wine.

**Opportunity cost of 1 bottle of wine in Italy:** 1/250 cars.

**Opportunity cost of 1 car in Spain:** 50 bottles of wine.

**Opportunity cost of 1 bottle of wine in Spain:** 1/50 cars. does this info change the shape of the graphs?]

The information provided about opportunity costs in Italy and Spain will indeed affect the shape of the production possibilities frontier (PPF) graphs for each country.

### 1. **PPF Shape for Italy:**
   - **Opportunity cost of 1 car:** 250 bottles of wine.
   - **Opportunity cost of 1 bottle of wine:** 1/250 cars.

   This indicates that Italy has a steep trade-off between cars and wine. The PPF will be relatively flat, as producing more cars requires giving up a large amount of wine. This means that Italy is relatively less efficient at producing cars and more efficient at producing wine.

### 2. **PPF Shape for Spain:**
   - **Opportunity cost of 1 car:** 50 bottles of wine.
   - **Opportunity cost of 1 bottle of wine:** 1/50 cars.

   Spain has a lower opportunity cost for producing cars, which means the trade-off is less steep. The PPF will be relatively steeper compared to Italy's because Spain sacrifices fewer bottles of wine to produce additional cars. Spain is relatively more efficient at producing cars and less efficient at producing wine.

### **Impact on Graphs:**

- **Italy's PPF** will be flatter, reflecting a high opportunity cost of producing cars and a low opportunity cost of producing wine.
- **Spain's PPF** will be steeper, reflecting a lower opportunity cost of producing cars and a higher opportunity cost of producing wine.

Therefore, the opportunity cost data **does change the shape** of the graphs, with Italy having a flatter curve and Spain a steeper one.

Would you like to explore how these differences impact trade decisions or other economic concepts?

### Relative Questions:
1. How does the concept of comparative advantage apply to Italy and Spain based on these opportunity costs?
2. What would the PPFs look like if both countries specialized in their comparative advantage?
3. How would international trade affect the consumption possibilities for Italy and Spain?
4. Can you explain how opportunity cost affects a country's decision on what goods to produce?
5. What happens to the PPFs if technological improvements occur in either Italy or Spain?

### Tip:
When comparing opportunity costs between two countries, the country with the lower opportunity cost for a good has a comparative advantage in producing that good.

Explore how opportunity costs affect the production possibilities frontier (PPF) shapes of Italy and Spain. Learn about the trade-offs between cars and wine in each country and how these differences influence economic efficiency. Understand why Italy's PPF is flatter compared to Spain's steeper curve due to their differing opportunity costs.

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